Court sets ruling date for Vinci Coffee case
Finance minister Matia Kasaija (2nd left) exchanges documents with Ms Enrica Pinetti (right) after signing an agreement with the Finance ministry to establish a coffee processing plant in Uganda, on February 10. PHOTO / FILE
What you need to know:
- A section of lawyers who included Mr Henry Byansi and Mr Michael Aboneka asked the court to declare unlawful the agreement signed between government and coffee exporter.
Court has set December 15 as the ruling date in the case in which the agreement between the government and Uganda Vinci Coffee Company Limited was challenged.
A section of lawyers who included Mr Henry Byansi and Mr Michael Aboneka asked the court to declare unlawful the agreement signed between government and coffee exporter.
The respondents in the case are the Attorney General, Mr Kiryowa Kiwanuka and Uganda Vinci Coffee Company Limited.
While appearing before the High Court Judge Emmanuel Baguma yesterday, the three parties were directed to file written submissions.
However, before the court’s directives, senior state attorney, Mr George Kalemeera, and Mr Gerald Batanda, who represented the coffee exporter, raised three preliminary objections that sought to have the case dismissed.
Court heard that the application before court was premature while the coffee exporter is a private entity which is not amendable for judicial review and the matters raised cannot be entertained by court.
“In the interest of justice, all parties should file written submissions for both the main case and the preliminary objections raised. From here, I will decide after looking at the two applications,” Justice Baguma ruled.
The court then directed that applicants file and serve the respondents on September 8, respondents reply on October 18 and rejoinder to the reply to the preliminary objections raised on October 31 and ruling on December 15.
In February, the Minister of Finance, Mr Matia Kasaija, signed an agreement with the coffee exporter for the production and export of coffee products which the two lawyers say is illegal, unfair, arbitrary, high-handed, irrational, ultra vires, null and void.
Petitioners’ concerns
The duo is seeking a court’s declaration that the failure of the minister to make adequate consultations, and or seek the necessary legal approvals from Uganda Revenue Authority, National Social Security Fun (NSSF), the Directorate of Immigration and Citizenship before purporting to waive taxes, NSSF contributions and work permits in favour of the coffee company is an abuse of power. They claim that it is also usurpation of their constitutional and statutory powers andunfair to Ugandans.
The applicants contend that the agreement gives monopoly to Vinci coffee company to control the market hence eliminating other players like small scale farmers, middlemen and co-operative unions.
However, in their response, the AG relied on the evidence contained in an affidavit by the acting director of economic affairs in the Ministry of Finance, Mr Moses Kaggwa, who contends that the agreement does not give the coffee exporter any authority to manage production, export, and set prices of coffee beans and its related products.
Mr Kaggwa further stated that all the required legal, administrative, and consultative processes were adhered to and the execution of the agreement by the government was informed by the overall government policy to invest in value addition and specifically agro-processing in line with the National Coffee Policy and National Coffee Act of 2021.
In a sworn affidavit by its company secretary, Mr Moses Matovu, the coffee exporter has since denied being handed a monopoly over the coffee business.
Mr Matovu contends that the firm is only empowered to set the price at which it buys coffee from willing sellers and not to regulate prices for other actors as alleged thus the agreement recognises the mandate of Uganda Coffee Development Authority in regulating coffee prices.
